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$PASO The ACTUAL changes in the float - and the timing - indicates ANYTHING BUT some kind of scheme by the company or insiders to dump shares onto retail investors' heads, the rumor that some have been spreading in social media.
Look carefully at the chart with my annotations below. I strongly believe it explains VERY WELL what is going on here, and why the price dropped so rapidly over the past ~3 weeks since 9/11. And it's NOT the company, insiders, or some kind of dilution scheme!
My suggestions/recommendations - study the info from the spreadsheet and chart that I've posted here. Back it up as needed from available public information. Do further DD as necessary to gain confidence in what's going on here... and make your own decisions, don't buy/sell/hold stock based on traders' opinions circulated in social media.
Having been able to take advantage of the opportunity to add several million more shares down here in the 2s, I've not been a complainer about the recent pullback. In fact, still adding almost every day, but I HAVE been able to add and I've got plenty, so I'm not worried if/when the price goes back up. In fact, I'll be very happy, as I should, because I have a nice position. But I think many on the sidelines are hoping they have a little more time to add, buy back, or start a position, and they are now jockeying for their pole position.
Good luck to all true PASOnians and PASOholics. The rest will express their regrets later or mumble under their breath, or simply move on to the next "play" and act like it never happened. imo, lol
Here are the comments and points that I annotated in the chart image below:
Additions to the Float:
from 5/1 to 6/4: 4,357,083
from 6/4 to 7/17: 12,114,269
from 7/17 to 8/11: 10,944,044
from 8/11 to 9/11: 47,323,640
[Yes, a larger number of shares recently added to the Float. I've discussed this in other posts, and I noted that I believe these "cheap shares" that some holders are willing to sell at about any price... are LIMITED, and it WILL stop - soon, imo. In fact, I believe some that sold at higher prices are now getting their shares back by soaking up these cheap shares, though carefully and with help of some of their own selling in order to hold the price while they load. But I suggest anyone do their own DD to make their own conclusions about why shares have been added to the float.]
Retail trading's "silent" reaction to OTC Markets posting of Float update on 9/11/2020: sharp decline (selldown or "takedown") in pps from 9/11 to 9/24.
-----------------------------
Subsequent trader comments (FUD) in social media about "red flags"(hmmm, just happens to be right at the bottom in what some call "the loading zone": starting after hours on 9/24 when price action showed indications of a bottom.
-----------------------------
Interesting to note that pps held .07-.08 range strongly sideways for 2 weeks while company is "supposedly" diluting new float shares into the market. But the price didn't drop until retail traders saw the float increase that was posted to OTC Markets on 9/11.
If the company, insiders or any others wanted to "dump shares into the market," they would have done it in the .10-.16 range for over 3 weeks. And you would have seen the float growing by more than the 16.5M during those 10 weeks from 5/1 thru 7/17.
So did the company dilute the price down to 2 cents? Or did retail find something it could use to take profits and buy back lower? You decide.
Data points in chart, plus related share structure info:
$SKDI Yes, true story.
Word on the street is that Spirit Halloween may have started something bigger than Party City may have imagined, but... COVID-19 forced them to step out and step up and now they have really LEARNED something - they are going to leverage their unique YEAR-ROUND advantage in this space and blow us away with results from this first year of the "new" Party City!
Here's to looking at big positive surprises for the 11/5 earnings report. We've yet to see the real action here for the Halloween holiday, let alone projections based on current performance for the upcoming Thanksgiving / Christmas / New Year's holiday season!
It's PRTY time! For many months to come!
Nice post, Chuck, I think you're right on target! Cheers!
Well, as I've said, you should trade penny stocks for a while and listen and learn and you'll know when folks are "working" the price to get cheaper shares. GLTY Over and out. Have a nice evening.
They're really working overtime now. Looked like a sure .025+ close and then the blocks and dumps came relentlessly with just minutes to close.
Lol, pretty obvious what's going on. SOMEONE lost their shares and they REALLY want them back. The EOD action plus the all-day work to keep the price from breaking out of this 023-025 channnel... there's serious interest for accumulation here!
Only a matter of time.
$PASO's to Dollars
Oh yeah, that's the one!
Good day, BBW and all PASOholics!
You're on the right track, here but actually the dividend deal is done. The Tender offer for rolling up Commons into that same Series C 6% dividend yielding stock has a deadline of 10/16.
We have an LOI, and are looking to see a signed Definitive Agreement for the reverse merger any time. The target date given was "early Q4." So... yeah, any day any time any where... isn't that a Beatles tune?
Clarity/Answers to the questions raised.
Nice to finally see a list of "red flags" that can be disputed, rather than great positive sentiment on the board... followed by major dumping... followed by negative sentiment and FUD about "red flags" without disputable specifics of what those "red flags" are.
Here I will look at dispelling this list of "red flags." All my opinion, of course, but fact-based as always.
First, we are told that these are the BIGGEST red flags, so you would think that, with some answers/clarity regarding this list of 8 items, the "market" should react positively, right? Well, let's see. I just want to see those ASK blocks and price manipulating tactics stop, before I have to buy another million or two to get out of this channel and leave some of them behind. I'd like the pps to be at a much higher level before we have some pps-moving calalyst news.
So let's take them one by one...
Well, don't hold your breath. Until this merger is done and CLX takes over the books, I'm not looking for anything fantastic in the report.
For example, just take a look at the "placeholder" that's up there right now, filed on the 15th of this month. It shows: "Preferred Stock Authorized, Not Defined" for the 10M shares (last page). It has been like this for years, in many, many reports. Clearly, it HAS been defined AND issued, and this is verified by Nevada SOS (DD).
https://backend.otcmarkets.com/otcapi/company/financial-report/257883/content
You're touching on the the reason many/most here are this board that have quite a bit of experience with penny stocks are REALLY, REALLY looking forward to CLX taking over here. For now, we have to wait until it's done.
This is a lot like many Pink Non-SEC Reporting filers on the OTC. In fact, this sort thing is the REASON a lot of these companies are not SEC reporting. NOT so they can do things badly, but simply because they can use their own limited abilities to put out just whatever OTC Markets will accept, and not worry too much about audits, etc. And are well known for not dotting i's and crossing t's and typically cutting/pasting their reports.
It's because they never did file with the Nevada SOS - that is verifiable now, it was verifiable then, and it was verifiable 2 months ago, 4 months ago and 6 months ago. Real DD would show that, and I know many here did in fact know that, including myself. That's again why I always urge folks to learn to do their own DD, to gain confidence and know what they own.
What most likely happened was they had a handshake deal that all were in agreement on, but then later found that they couldn't actually execute it without the forthcoming (plan-in-progress at that time) reverse merger deal being spelled out and agreed - and probably needed at least a Letter of Intent in order to get the holders of those shares to actually give up the shares. ALSO, they probably realized that, WAIT, we can't ACTUALLY do that yet, because we need to maintain >50% control in order to effectively make the deal and for other corporate actions. (THINK ABOUT THIS - IT'S A FACT, ACTUALLY). Those shares being in the treasury wouldn't give voting control to anyone.
One of the parties had their fingers on the tweet button, as the decisions were being made on a daily basis, and I think they just got ahead of themselves in saying that it WAS DONE. It's not like it was a secret that they tweeted what they tweeted, they were working hard on figuring out all of the mechanics of the deal they were working on.
So... the AGREEMENT related to the tweet about returning those shares to the treasury on Dec 16, 2019 is really the key. The AGREEMENT for "valuing the shares" that HAD to accompany any proposed deal that they had for the buyback at that time is the REAL KEY here. And THAT is what I described in my post.
Just a reminder - anyone who at that time thought the 10M Series A Preferred shares were being "given" back to the company without compensation was just a dreamer all along. Those shares represent a large stake in PASO, and give the holder(s) control of PASO. Nothing is free (except there is MoneyForNuthin, lol).
$PASO Recent corporate actions and subsequent events -> the necessary sequential steps for the reverse merger Definitive Agreement to be finalized and executed prior to announcement.
MERGER STATUS/TIMING
Original Announcment: "LOI for merger... closing by or before 7/15"
Subsequent Announcement: "Deadline of 7/15 extended to Q4 (calendar Q4)... this is such a big deal in the market and industry that CLX has been consumed with partner agreemements and related opportunities, they asked for the extension and PASO granted"
Recent Announcement: "The DA is in edit... making progress toward the conclusion... targeting early Q4 (calendar Q4)"
KNOWN MERGER DEFINITIVE AGREEMENT / CLOSING REQUIREMENTS
Requirement: Independent Due Diligence, each party
Requirement: Combined Due Diligence and negotiation by and between the parties for drafting a final Definitive Agreement, including all details related to any/all classes of shares and $$ being exchanged
Requirement: Secure the 10M Preferred Series A "control block" that will be acquired by CLX Health at the closing of the merger. These shares must be procured from their holders and returned to the company treasury so they can be transferred to CLX at the closing.
Requirement: Prior to closing, complete/close any/all planned, pending and/or in-progress corporate actions, as well as any new corporate actions required in order to effectuate the terms of the Definite Agreement (currently "in edit" as disclosed by PASO / CLX) - anything/everything related to share structure, allocations and issuances.
ACTIONS & ANNOUNCEMENTS
12/16: 10M Preferred Series A "Agreement" to return to treasury
5/29: Reverse Merger LOI, " CLX will acquire 10 Million Preferred Series subject to a dividend rate determined by the closing of the merger an appoint the Board of Directors in its entirety of PASO" https://backend.otcmarkets.com/otcapi/company/financial-report/248195/content
7/15: LOI Extension to Q4, "On July 14, 2020 we were issued a request by CLX Health to extend the closing date of the merger to Q4 2020." https://backend.otcmarkets.com/otcapi/company/financial-report/252044/content
8/27: A/S increase and Series C shares designation - signed
8/31: A/S increase and Series C shares designation - filed to Nevada SOS
9/1: A/S increase announced https://www.otcmarkets.com/stock/PASO/news/Patient-Access-Solutions-Inc-Plans-to-Increase-Authorized-Shares?id=272590
9/1: Series C dividend shares announced - Common 5000:1 Series C divided shares, record date set to 9/18
9/1: Tender offer announced: Common shares 250:1 for Series C preferred shares, deadline 9/18...later extended to 10/16 due to logistical/technical necessity
9/15: "Placeholder" Quarterly Report filed - very likely company knew this would result in the Yield sign Pink Limited Information badge on OTC Markets
9/16: Dividend Inclusion & Disbursement Clarification - noted O/S = 749,993,098 with 221,164,905 at DTC (float) as of 9/11
9/17: Tender deadline extended to 5pm on 10/16 due mainly to practical logistical/technical necessity involving DTC, brokers, etc.
9/17: Yield sign on OTC Markets: Pink Limited Information designation
9/22: OTC Markets update of share structure showed the newly increased A/S = 2,5B shares (accommodates 1B as-converted Series A, 750M as-converted Series C, plus original/outstanding 750M Common Shares), and also the O/S increased from 750M to 1,080M shares - representing precisely 329,998,018 additional shares issued since last reported on 9/11, 1 week prior - see detail below regarding these shares presumably issued for buyback of 10M Series A shares for the merger
MAJOR MILESTONES
A/S Increased: provides reserve for 10M Series A Preferred as-converted control shares (1:100); provides reserve for 3M Series C Preferred as-converted 6% dividend shares (1:250); provides issuable O/S shares for other transactions [likely including ~330M shares to procure the 10M Series A to return to treasury for transfer to CLX upon close of merger]
Shareholder Dividend: announced and delivered (9/18 record date and 9/22 pay date, posted to shareholder brokerage accounts on 9/25)
Tender Offer: in progress, deadline 10/16
Q3 Financial Report: "Placeholder" report filed on 10/15 pending amendments to complete, meanwhile Yield sign indicating "Pink Limited Information" status
UPCOMING MILESTONES / DATES
ANY DAY: Amended filing of Q3 Report
ANY DAY: Confirmation of 10M Series A Secured / Returned to Treasury - not necessarily required for Definitive Agreement to be finalized and signed (though CLX may demand it), but IS REQUIRED for closing of merger
ANY DAY: Removal of Yield sign badge on OTC Markets -> return to Pink Current status
10/1: Q4 begins - target closing date for merger stated to be "Early Q4"
ANY DAY: All shareholders will receive communication from brokers or transfer agent regarding tender offer
10/16: Tender deadline date for 6% dividend Series C rollup of Common shares, all shareholders
------------------------------------------------------------
PROCURING THE 10M SERIES A PREFERRED SHARES (to be acquired by CLX upon closing of the merger)
Go back to December 16, 2019 when the company tweeted on the then-live @PASHealth twitter account. The tweet stated:
Now look at the price history to see the closing prices around that date (below).
https://www.barchart.com/stocks/quotes/PASO/price-history/historical
(you need at least a free account registration to go prior to 90 days recent history)
Dec 16 was a Monday, so an agreement for "buying back"/cancelling the 10M Preferred Series A shares may have been based on the closing price on the previous day (Friday) or possibly the average of closing prices over the 3 days prior, or something like that. We don't know the specifics, but it was likely (imho) to be something "like" this, as this is an acceptable and often-used method. So let's say the price per share was , however determined, was .0150. This is "reasonable" to use as a guesstimate, as based on the stock price at that time. So...
10M Preferred Series A shares convert at a ratio of 1 to 100 into Common shares, giving 1B shares. 1B shares at a price of $0.0145 per share = $14.5M (0.0145 is the average of the closing prices on the 3 days prior to Dec 16, 2019). So each of Linzalone and Weitzberg may have agreed to sell the shares to the company at $7.25M each (each holding 5,000,000 Preferred Series A "control" shares). Now, the question is, how/when does the company come up with that kind of money in order to close on that part of the deal, which is also likely to be tied to the "general" reverse merger plan. Not likely Linzalone and Weitzberg would execute the transaction without money in pocket and the deal sealed or, if done before the deal sealed, reversible if it is not consummated (final merger executed). BUT - in order to lock up this agreement to be able to proceed with other related agreements - before the could ever get to an LOI with the merger candidate - this agreement for total DOLLAR AMOUNT had to be agreed. NOW - it's also understandable how these 2 guys, founders and original architects of the original business bought and deposited the original PASHealth technology with Patient Acccess Solutions, would want a bigger upside potential with the view of what was to come (with a reverse merger involving SiriusIQ and UST Global to market a major healthcare industry data handling framework like what has been described as the IT backbone for HealthyAmericaâ„¢. So the agreement likely included a conversion of the agreed dollar DOLLAR AMOUNT (based on the common shares market price back in Dec 2019 at the time of the agreement) into shares of the company for holding post-merger in order to see substantial upside.
So... now you take the (my above rough guess based on factual historical market price and timing of the announcement of retirement of the 10M Series A shares) $14.5M and apply that to the timing of the 329,998,018 addition to the O/S - - here we go...
On 9/16/2020, the company issued a press release:
globenewswire.com/news-release/2020/09/16/2094782/0/en/Patient-Access-Solutions-Important-Shareholder-Notice-A-Dividend-Inclusion-and-Disbursement-Clarification.html
In this press release, the company stated that, as of 9/11/2020, the O/S was 749,993,098 shares.
On 9/22/2020, the OTC Markets Securities info page for PASO was updated, showing that the O/S is now 1,082,491,116 shares, reflecting an addition of 329,998,018 shares to the O/S since 9/11/2020 (just a week prior). Now let's say management had achieved certain requirements and/or stipulations and on Monday an agreement was reached to execute the prior agreement (December 16, 2019) to convert the $14.5M "value" of the Series A shares back to Common shares based on the closing price on Monday plus the prior 2 days. If you take the 3 days closing prices and average them (9/17, 9/18 and 9/21), you get .0462. Dividing 0.0462 into $14.5M gives 313,852,814 shares.
This number is real damn close the ~330M that were just issued into the O/S.
Depending on the very detailed specifics of whatever agreement was made to buy back and retire the 10M preferred shares, I'd say that this scenario is damn close to the number of shares added to the O/S to not give it a very high probability. Also, any difference in the actual amount could very easily be explained by some fee (partial or payment in full) that may have been agreed for the $50B PE firm that is involved in this deal.
https://www.otcmarkets.com/stock/PASO/security
Anyone that thinks anyone - let alone founders and managers of a business for a decade or more - are going to just give away 10M shares representing a large stake and controlling interest in their business... for NOTHING... was always a dreamer from the day of the original announcement of the retirement on Dec 16, 2019. We ALL knew there had to be a deal of some kind. Now I believe I know what it is. These guys are vested now with a pretty good stake in the future of PASO/CLX, and WE shareholders (ALL SHAREHOLDERS) can now appreciate that we have the 10M Series A preferred shares required to close this merger deal.
PROGRESS! ANOTHER STEP CLOSER!
$PASO's to Dollars
Holding gains nicely here!
Will be interesting to see if there's a dip with this S-3... buying op. I think a few institutional holders that sold this year took profits (or at least really nice recent gains) way too soon.
Oh yeah, that's what I was trying to say! You nailed it, BBW.
All have a good one, we'll do this again tomorrow. Every day is closer to the gold.
$PASO's to Dollars!
Winner, winner!! Ding, ding, ding!!!
Okay, now really... back to my life. GLTA PASOholics and PASOnians!
$PASO's to Dollars!
As JJ has put out here... one good day of gains off the bottom and everyone will be cheering and chanting again. PASOholics and PASOnians are simply taking a breath. Those who are otherwise addicted to board messages, tweets and other stimulation, I suggest: take a shot of PASO and a deep breath. Life is too short.
Okay, now really over and out.
Sounds like you were watching Level II and watching the trades. You have experience and understand OTC trading (I assume), so you shouldn't be concerned at all. In fact if you were concerned at all, watching the action should give you much greater confidence and you'd know without a doubt that someone(s) are working like hell to get their shares back, working like hell to give some kind of negative sentiment from the strategic dumps to the bid every time the buying (at bid AND ask) threatened to ignite a larger rally... while they are accumulating their position once again.
It was a good day. Over and out.
If you've been around to see how they've done things in the past, the yield sign is nothing new. What's different is this -
Typically, they file a "placeholder" report like the one that is there now, filed on 9/15. Then they would start filling in the gaps and organizing the format properly, and they'd file another 1, or 2 or 3 drafts within a day or two or three, before it's complete. (you can verify this by clicking on the ALL or INACTIVE tabs to the right of the disclosures on OTC MARKETS: https://www.otcmarkets.com/stock/PASO/disclosure)
This one is different, as you probably should expect. I do, at least. They haven't updated at all since the 9/15 filing, and it's been 13 days. Corporate actions are finished, with only the tender offer remaining to be closed soon. Many steps required for the merger to close have been put in place in the necessary sequence over the past 4 weeks now. Q4 is starting this week. The extension for the merger to close was for Q4, with the target timeframe stated as "Early Q4."
FIRST, their main focus (imo) is on checking of the boxes for the merger, and I don't think they are very concerned with the yield sign for the moment. They don't really need to please RETAIL shareholders (mostly just swing traders and day flippers, the way they see it) at the moment, they need only please the incoming (merging) group, CLX / SiriusIQ / UST Global. And I'm sure they believe that their closer and loyal shareholders trust them and are not blowing up their email, phones and twitter to pry information, and they're trusting enough to not worry about a yield sign on OTC Markets at this time.
SECOND, there's a real possibility that some of the info that they want/need to disclose in the final/complete draft of the quarterly report will provide significant insight into what we are seeing with the share structure changes and such. Such details being disclosed while they are trying to wrap up the merger DA could cause more distraction than it's worth, from retail traders once again screaming for more details purely to manipulate or if only to satisfy their insatiable need for hand-holding security.
To me, and I'm sure to others, this yield sign hanging the way it is, is a pretty good indicator that they have their nose to the grindstone and things are going well for the merger. If not - as many have already posted - they would have a hell of a legal issue for not disclosing a termination of the deal within a very short time of them knowing. Yes, I've seen where folks have said that they have no responsibility to let the market know if the merger is off, and that's pure BS with a capital BS. But you decide. Q4 is around the corner.
You need only watch L2 to know without a doubt. Tell me, why does someone put up a 2,000,000 share block on the ask in the mid 2s at 3:20pm on Friday, when it was clear the market was looking for an EOD rally to a new HOD close?
Only 1 reason. Hint: someone wants their shares back.
Yes, but my earlier post stands. I really wish you would STOP with the "factual" presentation of your opinions. I've asked before, because it's very misleading.
Wow, you're right. My mistake. Apparently the original writer posted "increase outstanding shares". I guess my eyes fooled me, I associate "increase" with A/S and "issue" with O/S, as in "issuing more outstanding shares".
Guess I'll take a breather and get back to the relaxation.
Actually, the prior post on this topic questioned why the A/S increase wasn't done prior to 7/15 if it were related to the merger deal, implying that if it was related to the merger... you'd think they would have done it before 7/15.
The post that I referred to stated that "If it was needed, it would be done before Jul 15." And that is not a fact, but apparently an opinion of the writer. In MY opinion, this is incorrect. And very misleading. Especially when presented as if a fact.
There are two reasons that have been speculated about why the A/S was increased.
1. The A/S must have a reserve of shares to accommodate ALL of the as-converted Series A Preferred shares (as well as any other/similar convertible preferred shares). With 10M Series A shares that convert 1:100 Common, that requires 1B shares reserved in the A/S.
[This statement is actually a legal FACT. Whether the A/S was actually increased in order to adhere to this legal requirement can be disputed, if you want to be technical about it.]
2. The A/S must be increased to allow for common shares to be issued for the procurement of the 10M Series A shares for the corporate treasury in order to execute the planned merger.
[This is what my stickied post #46210 describes. It is NOT a known FACT, but a fact-based speculation with, imo, very high probability.]
I'm not sure what you mean. In MY reply to you I clearly gave you an example where I put in very large letters (CAPS) "HYPOTHETICAL / EXAMPLE - NOT FACT, TO BE CLEAR!!!"
Did you just not SEE that?
This is not really a true statement, is it? Maybe if you would say, "I think..."
Thank you, Chuck! I appreciate the time you've taken to compose such a creative and insightful (also entertaining) post.
Do the same, mox00! Looking forward to the coming days and weeks bringing continuous gains from this level.
$PASO's to Dollars!
My feeling is that no, there's nothing to convert.
Wow, I really didn't put any further thought into trying to account for every last share, but you may have identified exactly what any remaining amount (if any) in the 330M shares were issued for.
I estimated 313,852,814 shares for the 10M Series A Preferred buyback to close the merger deal, and we saw 329,998,018 added to the O/S last week. The difference is 16,145,204. And of course my estimate was exactly that, an estimate, because we don't know the precise terms and timing of the agreement that would have used the very specific share price for valuation of the original preferreds, and then for converting to C Series. It does seem very possible that those 18.5M warrants could have been exercised recently from those newly issued shares.
Thanks Roofus. I don't want to create unnecessary hype and expectations, but yeah, I think anyone could see reasonably that this COULD certainly be in the several dollars range, without a doubt. But I know nothing more than anyone other retail investor. But keep in mind that if they don't do what's needed to command a price in the dollars, it could even be sub-dollar.
AND, rolling up the O/S into preferreds is one great way to boost the market cap substantially, and that's without a reverse split of course. That could really help to get this into dollars.
My personal desire and goal is to see this in the range of $1 to $3 a year from now (would not have a problem if it were higher, lol), and $5 to $10+ within 5 years.
Way too early to tell, but we should get a real good idea almost immediately upon closing of the deal. If not with the disclosure of the DA, then with the related press release. At least, we could then be more reasonable in the speculation. But first things first, let's just get the merger done.
No, I don't think so. I feel confident of that, but that's just my opinion of course. I think that the C shares were described pretty well as for their purpose, and however the brokers/dealers are referring to those share for their internal systems, that's just an artifact of their platforms.
I believe they are doing what they've said, and buying into control of the company and appointing their own Board of Directors. So they will be the surviving entity and the business will become CLX Health PubCo, Inc. (just meaning that CLX will then from being a private company to a public company).
I do however think that it's POSSIBLE that the company might spin off the old PASO business. That's just something that is done frequently with reverse mergers.
Though, in the September 1 PR announcing the A/S increase for the merger, the company stated:
Just checking in and saw this in the last handful of posts.
I noted where you mention "dilution" and I'm pretty sure you're just using that word loosely in reference to the shares that are being sold cheap. But just in case - and to clarify this for others - I want to explain again that there (IMO) is NO DILUTION going on here.
The O/S was max'd out in June of this year, and there is no convertible debt on the balance sheet. The A/S was increased to accommodate the pending merger with CLX Health / SiriusIQ / UST Global, and just this week we saw the O/S increase by 330M shares which I believe represents the buyback of the Series A Preferred shares for the merger. So the newly issued shares are Restricted, and I believe they will likely be rolled up into Series C Preferred shares for the 6% dividend, being held by the previous owners of the 10M preferred shares control block for PASO (which needed to be returned to the treasury for the pending merger deal).
So no dilution.
The shares being sold cheap right now are (IMO) only cheap because they were essentially "free" or "bonus/incentive" shares from cashless warrant exercises by prior lenders and/or service providers. They are already part of the O/S and are NOT dilutive, but they are being sold cheap and are LIMITED. This is different from dilutive "toxic" note conversion shares. Once these shares are gone, the only shares available will be from retail shareholders - those who buy low and sell high - those who understand the future value of PASO shares as we enter into a reverse merger with CLX Health / SiriusIQ / UST Global. THOSE shares will not be cheap... ESPECIALLY if/when the merger deal closes with the signed DA... WHICH is expected "early Q4"... WHICH begins next week.
This isn't to pump or excite penny stock traders. This is simply a moderate pounding on the table, repeating that these "cheap shares" are NOT dilution, but they ARE everyone's limited-time opportunity for major gains in what looks to be an awesome high-growth potential investment with some great companies with great worldwide connections.
Thank you very much, Time4Beer. I've read many other post from you history, and I definitely appreciate the validation that you bring to this here. And thank the wife for me (all of us here) please. :^)
I agree, dshade. It's a shame that some traders take advantage and work it so harshly, but it's a battlefield out here with some absolutely shameless in their methods. It hurts other investors/traders, it hurts the companies, and it hurts the "platform" - I mean, that's a BIG part of what gives "penny stocks" (or, "the OTC") a bad name.
Excellent post, mox00!! I believe you are RIGHT ON with every point that you made here! Nicely done, thank you.
Well, as I mentioned in another post, there are some sellers here. They're not toxic, but it has a similar effect as "toxic" convertible notes. Only difference is, it's not actually dilutive. That is, the O/S is not increasing. The shares have already been issued, long ago. But the sellers just want to sell, they're not long investors, no matter HOW great the future looks. They just get their money and go on their way. The cool thing is, it makes for great cheap buying ops... but the shares ARE limited, and eventually it dries up and everyone looks back saying "Damn! I shoulda... I woulda... I coulda... if I just woulda!"
Okay, here's a hint. When "investors" fund the companies in the way that this funding is available for small public companies, they often get cashless warrants as an "incentive." At some later time, usually within a 5 year window from the time of the original "investment," they exercise these warrants. It's like a Christmas present. They pay nothing, because with cashless warrants, the company "withholds" a part of the total that pays for the rest of the warrants. And then the "investor" sees "free shares" that they can just sell at any price and go down the road. SOME of the shares issued in 2019/2020 - as shown in the tables in the quarterly reports - are likely to be from exercised cashless warrants, to lenders and service providers. That's the end of this brief hint about what SOME of the selling action is (most likely).
Other selling action is clearly retail traders "working the stock" down to "get ahead of the" cashless warrant shares sellers in order to flip down their cost basis while some long shareholders are in fear and buying interest is weak.
But I have a feeling that:
1) those "free shares" being sold by ex-warrant holders will be all by dried up very soon, and
2) all of that opportunity for those manipulators and FUD spreading flippers will be a thing of the past very soon.
They're non-reporting (SEC non-reporting) so you don't see much of the disclosures on these things except for in the quarterlies. I'm thinking that we'll get clued in when they get OTC Markets updated with the complete report an day/hour/minute. That report will also get rid of the yield sign, so that will also be good going forward.
Thanks, maz1978. There's probably some more info that I can add as I get time going forward.